Associated Builders and Contractors (ABC) released its Construction Backlog Indicator (CBI) for the first quarter of 2012. CBI declined 5.4% from the previous quarter, dipping from 7.8 months to 7.4 months, but is slightly higher compared to the first quarter of 2011.
“On the heels of a mixed bag of national economic news, CBI declined for the second quarter in a row,” said ABC Chief Economist Anirban Basu. “The lull in nonresidential construction momentum is not poised to end in the immediate term. The nation’s nonresidential construction activity will remain soft during the summer months, with flat to declining nonresidential construction spending.
“The ongoing instability in the nation’s nonresidential construction industry appears to be related to the period of economic weakness that developed in the broader economy last year, as well as concerns regarding export growth due to recessionary forces in Europe,” Basu said. “The result is that many prospective construction projects were cancelled or postponed.”
Regional highlights
- Compared to the first quarter of 2011, construction backlog is slightly higher in every region with the exception of the Northeast.
- In the West, construction backlog expanded by 0.46 months from the fourth quarter of 2011 to the first quarter of this year.
- The Middle States have the shortest backlog at 6.34 months and the South continues to register the lengthiest backlog at 8.88 months.
Analysis
“The South, which includes a number of rapidly expanding, commodity rich states, continues to be the top performer in terms of producing new opportunities for contractors,” said Basu. “Though average construction backlog in the South was roughly flat during the past quarter, backlog is up by seven-tenths of a month from one year ago. No other region has generated an increase in backlog that large.
“Construction backlog expansion in the Middle States continues to be stifled,” Basu said. “Gains in industrial production have been sporadic during the past year – too scattered to induce the next wave of manufacturing-related construction projects. In addition, average construction backlog in the Northeast has fallen on a year-over-year basis. Last year’s soft patch, including the economic weakness associated with the debt ceiling issue, appears to have impacted the financial institution-rich Northeast more than other region.” +
Related Stories
| Sep 13, 2010
Data Centers Keeping Energy, Security in Check
Power consumption for data centers doubled from 2000 and 2006, and it is anticipated to double again by 2011, making these mission-critical facilities the nation's largest commercial user of electric power. With major technology companies investing heavily in new data centers, it's no wonder Building Teams see these mission-critical facilities as a golden opportunity, and why they are working hard to keep energy costs at data centers in check.
| Sep 13, 2010
3D Prototyping Goes Low-cost
Today’s less costly 3D color printers are attracting the attention of AEC firms looking to rapidly prototype designs and communicate design intent to clients.
| Aug 11, 2010
Cubellis principals reorganize as CI design
Former principals of Cubellis Inc. have formed ci design "with a stellar group of projects in the United States and internationally," states John Larsen who, with Richard Rankin and Christopher Ladd, is leading the architecture and planning firm.
| Aug 11, 2010
Leo A Daly changes name of STH, completes acquisition
LEO A DALY has changed the name of STH Architectural Group to the name of its parent company, Leo A Daly. STH was acquired in February 2009 as a strategic move to accelerate growth in its core business sectors and to strengthen the firm's presence in the Florida market.
| Aug 11, 2010
AIA hires Worthen, Fitzgerald for sustainability, young architects initiatives
As part of an ongoing effort to bolster its education and outreach on sustainability, the American Institute of Architects has hired William J. Worthen, AIA, LEED AP, vice president of Simon & Associates (a green consulting firm) as Director and Resource Architect for Sustainability. The AIA has also hired Kevin A. Fitzgerald, AIA, a former associate with Robert AM Stern Architects, as a staff coordinator/team leader for several AIA committees devoted to young architects.
| Aug 11, 2010
Perkins+Will acquires Canadian firm Shore Tilbe Irwin & Partners
Shore Tilbe Irwin & Partners of Toronto, Ont., Canada, has been acquired by Perkins+Will, a global integrated design firm headquartered in Chicago. The merger marks Perkins+Will's 19th office in North America and its second in Canada.
| Aug 11, 2010
NBBJ and C.T. Hsu associates join forces for Florida healthcare market
NBBJ has entered into an exclusive alliance agreement with C.T. Hsu + Associates P.A. (CTHA) to provide world-class design/planning services for Florida's emerging healthcare and science facilities market. The alliance combines NBBJ's international reputation for the design and planning of healthcare and science & research facilities with CTHA's knowledge of community needs and established reputation for planning and design expertise in Central Florida.
| Aug 11, 2010
Minneapolis Public Housing authority, Honeywell launch energy retrofit program
Minneapolis Public Housing Authority and Honeywell today announced a $33.6-million energy efficiency and facility renewal program that will help the housing authority improve its infrastructure, reduce its impact on the environment, and save more than $3.7 million in utility costs per year. Local contractors will also complete a majority of the work for the program, one of the largest of its kind for a public housing authority, helping boost the Twin Cities job market.
| Aug 11, 2010
Shepley Bulfinch announces merger of Merzproject
National architecture firm Shepley Bulfinch of Boston and Merzproject of Phoenix today announced their merger. The merger unites Shepley Bulfinch, one of the country’s leading design firms, and Merzproject.
